New PST Rebate on Machinery and Equipment

The new PST Rebate on Machinery and Equipment is a temporary measure that acts like a PST refund and allows corporations to apply to receive an amount equal to the PST they paid between September 17, 2020 and September 30, 2021 on qualifying machinery and equipment.

If your business has bought machinery or equipment, or is thinking of making this type of investment, get the details about this new program below and from the government page here. 

Eligibility

  • This credit is available to all incorporated businesses —  partnerships and sole proprietorships cannot apply.
  • Non-profit or charity corporations are not eligible, neither are government bodies or schools or universities.

What Purchases Qualify

  • The rebate applies to eligible equipment that is purchases between Sept 17, 2020 and Sept 30, 2021
  • The equipment must considered a capital asset — this broadly means the equipment has been capitalized for accounting purposes (for example, is subject to depreciation)
  • PST paid on equipment/machinery leases is eligible
  • Equipment/machinery is included in the definitions found in Schedule II to the federal Income Tax Regulations for capital cost allowance (classes 8, 10, 12, 16, 38, 43, 43.1, 43.2, 46, 50, 53, 54, and 55)
    • This will include many things, including computer hardware and software, furniture, appliances, machinery, tools, linens, dishes, electric vehicle charging stations and most zero-emission vehicles
  • The machinery/equipment must be primarily acquired for gaining or producing income

How To Apply

  • Be sure to keep all receipts and invoices between September 17, 2020 and September 30, 2021 with proof of the payment of PST on qualifying machinery and equipment
  • You have until March 31, 2022 to apply
    • First application period: you can apply any time between April 1 and Sept 30, 2021 if you don’t want to wait until the program window closes to get your rebate
    • Second application period: you can apply a second time from October 1, 2021 through March 31, 2022 for any purchases made after your initial application
    • If you didn’t submit an application during the first application period, you can submit up to 2 applications in the second application period.
  •  You can apply online through eTaxBC or if you don’t have that, you can apply through an online portal
  • Rebate payments are made by direct deposit for all applicants with Canadian bank accounts (cheques otherwise)